Business modelling and analytics

Helping you create value through M&A activities and make complex decisions faster and with more confidence

At a time of significant industry convergence, digital disruption and shifting business models, deal value creation has become more important than ever. But as we’ve seen, creating deal value has grown even more challenging as the merger and acquisition (M&A) landscape continues to evolve. In this environment, having the right data is especially critical, which is where business modelling and analytics plays a key role in helping dealmarkers uncover powerful insights that support more informed decisions about the future of their business.

Our team of deals business modelling and analytics specialists can help you increase the value of your deals and find practical solutions to complex business problems by providing data-driven insights into your financial, commercial and operational decision-making processes.

Whether you’re considering an acquisition, exploring an investment or looking to improve the performance of an existing business, we can help you accelerate and deepen the analysis. Through dialogue with you, we help define underlying business issues and develop customized, reliable, user-friendly tools offering the insights you need to make informed decisions and deliver even better outcomes.

How we can help

Deal financial models

Financial modelling is at the heart of any critical business decision. When you’re considering strategic options for your business, like a potential acquisition or divestiture, financial models can help you make better and more informed decisions. Our team can help support deal execution through:

  • Buy-side financial modelling: Providing you with better forecasts for the target business and potential synergies through quality-of-earnings adjustments and insights into key variables and assumptions driving the valuation.
  • Sell-side financial modelling: Providing credible forecasts and analysis to potential purchasers and assessing the impact of divestiture scenarios.
  • Financing modelling: Supporting your creditor and bank negotiations through a robust and tailored analysis of the deal, including insights into enhanced performance following the investment or restructuring.

Financial model diligence and health check

Financial models are at the centre of your business decisions. Management teams are under significant pressure to adjust forecasts, reconcile variances and update financial information in real time in light of market volatility. Being comfortable with your model is critical to answering questions such as:

  • Are your outputs accurate?
  • Does your model provide sufficient insights?
  • Is your model easy to update?
  • Is your next deal at risk?

Our specialists also look beyond the model. We provide practical commentary on how it addresses broader business issues through:

  • Model health checks, which analyze the financial model to ensure it provides accurate information to support your business decisions.
  • Model diligence, which involves a detailed check to test the model for mechanical accuracy, along with a formal report summarizing the work performed.

Deal analytics

Analytics are key to identifying, quantifying and delivering on value creation opportunities from a deal. Our team can help you at various stages of the deal cycle to turn complex data into business intelligence. We offer:

  • Buy-side analytics: Tap into internal and external data sources to increase confidence in the value potential of the target and validate the deal thesis.
  • Sell-side analytics: Create a clearly articulated, data-backed equity story to maximize exit value.
  • Post-deal analytics: Use cloud technology and advanced analytics techniques to improve visibility and control of performance and align your organization (senior leadership, middle management and front line) to the value creation plan.

Modelling- and analytics-led value creation

Modelling and analytics that enable data-driven insight and help dealmakers improve top-line or bottom-line results are essential tools. With our analytics expertise, we can help you implement solutions that create value for your business.

We focus on helping you streamline key areas of potential value creation, generate greater return on capital employed and increase shareholder value through:

  • Top-line analytics and modelling, including insights into portfolio mix, pricing schemes and churn.
  • Bottom-line analytics and modelling, including insights into cost drivers, operating model and synergies.
  • Balance sheet analytics and modelling, including analysis of working capital and financing optimization.

Business financial models

When you’re making business decisions or implementing a strategy, you need insightful, timely and accurate management reporting. Our team can help you develop, design and implement customized tools and models that will help you better forecast, monitor and evaluate your business. We offer:

  • Strategic planning: Helping you align forecasts to the strategic plan.
  • Investment analysis: Assessing the rate of return under different scenarios and sensitivities.
  • Commercial negotiation support: Bringing insights to frame, navigate and conclude commercial negotiations with suppliers, distributors, clients and partners.
  • Profitability and strategic option analysis: Helping you assess profitability by channels, clients, products, activity sector and business segment.
  • Cash management: Helping you increase the accuracy of cash forecasting.
  • Budgeting and management reporting: Providing insightful, easy-to-use and updated budget and reporting models.

Contact us

Michael Shea

Michael Shea

Partner, Deals Private Equity Leader, PwC Canada

Tel: +1 416 687 8025

Philippe Pourreaux

Philippe Pourreaux

Partner, Value Creation, Deals, PwC Canada

Tel: +1 514 205 5144

Sherezade Suhail

Sherezade Suhail

Managing Director, Value Creation and Financial Modelling, PwC Canada

Tel: +1 416 687 8975

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